Spotlight

Indian equity markets are poised for a firm start, with improving global risk sentiment underpinning investor confidence after renewed optimism over a potential U.S.-Iran agreement raised expectations that shipping through the Strait of Hormuz could gradually normalize. The prospect of easing geopolitical tensions has driven a sharp decline in crude oil prices, with WTI crude falling to a fresh low near $74 a barrel before stabilizing around the $75 mark. Reflecting the improvement in sentiment, GIFT Nifty futures are trading above the 24,700 level in early trade, comfortably above the Nifty's previous close of 24,614, pointing to a positive opening for domestic equities. 

Asian markets are trading sharply higher, adding to the improving risk appetite across global equities. Japan's Nikkei 225 has advanced more than 3%, while South Korea's Kospi has surged over 4%, reflecting broad-based optimism as easing geopolitical tensions and lower crude oil prices continue to support regional markets.

While the recent decline in crude oil prices reflects growing optimism over a potential normalization of shipping through the Strait of Hormuz, investors are likely to remain cautious until there is greater clarity on the evolving geopolitical situation. Against this backdrop, attention is firmly focused on the Reserve Bank of India's Monetary Policy Committee (MPC) decision due this morning. Market participants will closely assess the central bank's commentary on inflation, liquidity conditions, economic growth, and the broader policy outlook for clues on the future path of interest rates. The policy guidance is expected to be especially significant for banking and other interest rate-sensitive sectors.  

Foreign Institutional Investors (FIIs) extended their buying streak for a sixth consecutive session, with sustained participation from Domestic Institutional Investors (DIIs) further reinforcing the market's constructive undertone and providing an additional cushion to the ongoing recovery.

Technical view 

Nifty 50

Nifty 50 is expected to trade on a constructive note, with the broader technical structure remaining positive despite the recent phase of profit booking. From a technical perspective, a decisive and sustained move above the 24,600 level will be crucial to reinforce bullish momentum and could pave the way for an advance towards the 24,800–25,000 region.
 
On the downside, the 24,400–24,300 zone is expected to act as the immediate support area. Holding above this band will be essential to preserve the prevailing recovery structure, while a decisive break below 24,300 could trigger fresh profit booking and expose the index to the 24,200 support zone. Overall, the near-term technical outlook remains cautiously positive.

Bank Nifty

Bank Nifty is expected to open on a firm note, with the index continuing to build on its recent recovery despite intermittent profit booking. Technically, the 58,300–58,500 zone continues to act as the immediate resistance band. A sustained breakout above this region could strengthen buying momentum and open the door for an advance towards the 58,800–59,000 region.
 
On the downside, the 57,600–57,500 zone remains the immediate support, followed by the 57,300 level. Holding above these support levels will be important to maintain the prevailing recovery structure, while a decisive break below 57,300 could weaken sentiment and drag the index towards the 57,000 psychological mark. Overall, the near-term technical outlook remains cautiously positive.